Why one-size health benefits don’t cut it

This cross-generational increase underscores a critical imperative for employers, brokers and consultants to move beyond one-size-fits-all benefit strategies and develop approaches that account for the distinct health needs, priorities and behaviors of each generational cohort. By meeting each group where they are and engaging them in meaningful, relevant ways, there’s a real opportunity to drive the kind of behavior change that leads to smarter utilization of the health system and of the benefits made available to them.

Employees are working longer than they once did: The average retirement age has risen from 57 to 62 in just a couple decades — a meaningful shift that reflects financial pressure and increased longevity.³ In fact, nearly half of surveyed Baby Boomers aren’t confident they have enough income to last through retirement or indicated they won’t be able to retire.⁴ Part of this is due to Social Security benefits not starting until age 62 — with full benefits not kicking in until age 67 to 70⁵ — and Medicare not being available until age 65.³ At the same time, life expectancy continues to rise for both men and women.

This poses a problem for employers, because the longer this generation remains in the workforce, the more costs they incur. For instance, despite representing around 13% of UnitedHealthcare members in 2025, Baby Boomers drove more than 20% of the total costs to employers. Additionally, the average per-member, per-month costs by generation surpassed Gen X by 1.6 times and Millennials by 2.5 times, according to the UnitedHealthcare 2026 Health Trends Report. This is largely due to the more complex health needs that come with age — which often lead to more medical care and, ultimately, higher costs.

In care settings, Baby Boomers tend to prefer more traditional care pathways than other generations, favoring in-person visits when scheduling appointments compared to Millennials and Gen Z members, who choose virtual visits 2.5 times more often than Baby Boomers and Gen Xers.⁶ They also generally follow and rely on provider advice and care more than any later generation — and often make more optimal health care decisions.¹

Retirement security is also a growing concern for Gen Xers. Nearly half report they must push back their retirement timeline due to insufficient savings, and only 38% feel confident they will retire on their original schedule⁷ — a financial reality that closely mirrors the pressures facing Baby Boomers.

Compounding that strain, many Gen Xers find themselves navigating the demands of the “Sandwich Generation” — simultaneously caring for their children and aging parents or family members.⁸ Alongside Millennials, Gen X bears a disproportionate share of this responsibility, consistent with the fact that 1 in 4 Americans now serve as caregivers.⁹

These pressures coincide with rising health care costs tied to chronic conditions. UnitedHealthcare data shows that employer spend on cancer, circulatory conditions and digestive disorders peaks among employees in the 50–59 age group.¹ As a result, Gen Xers account for approximately 35.5% of total employer spend — a striking figure given that Millennials represent a larger share of UnitedHealthcare commercial membership.¹

The convergence of physical health challenges with significant career and caregiving responsibilities may also be taking a toll on mental health. Yet utilization data reveals a persistent gap: Gen Xers are not fully accessing the behavioral health benefits available to them.¹⁰

Care preferences for this cohort tell a nuanced story. While Gen Xers tend to favor in-person care, members ages 30 to 49 — spanning both Millennials and Gen X — accounted for the highest share of virtual care users over the past year, representing more than 40% of all virtual visits.¹¹ Gen Xers are also more willing than their older counterparts to switch providers in pursuit of improved health outcomes.¹²

Currently the largest segment of today’s workforce, Millennials may stay in the workforce for longer than previous generations since they (along with Gen X and Baby Boomers) also have higher levels of retirement insecurity.¹³ In addition to longer lifespans, Millennials may be carrying more student debt than other generations.¹³

As Millennials head into their 40s, they typically experience more health challenges. The share of Millennial members considered “well” declined from 25% to 22% between 2023–2024 and 2024–2025, while those living with chronic conditions rose from 44% to 47% and those managing complex conditions increased from 6% to 7%.¹¹ This generation, particularly ages 30–34, are having the most births and are responsible for the majority of maternity-related claims and costs.¹⁴

According to UnitedHealthcare data, Millennials experience the highest prevalence of behavioral health conditions, with women experiencing them more than men.¹ This may be due to grappling with big life changes, such as caring for children and aging parents. As part of the “Sandwich Generation,” they’re open to professional support and self-care resources that fit their potentially busy schedules and tight budgets.¹⁰

As this generation came of age with social media, they are among the least likely to rely on traditional health care with about 51% visiting a provider less than once a year.¹² They are also quick to adopt health-related technology.¹² Because of busy lives, they typically want care that is convenient and effective — both for themselves and those in their care. Despite that, this generation visited the ER more frequently than any other generation and, along with others, have decreased their utilization of virtual care.¹

With Millennials dominating today’s workforce, employers might be tempted to cater to that generation’s preferences. But that approach has the potential to alienate other generations, who are just as important to their employee population. Employers should instead design their health plan and benefits around the diverse needs of a multigenerational workforce based on its specific makeup.

Working with a carrier that possesses robust data and analytical capabilities is essential for employers seeking to drive meaningful health outcomes across their workforce. By leveraging these insights, employers can be better positioned to identify where the greatest health disparities exist, target areas of opportunity with precision and tailor outreach strategies that foster deeper engagement and more equitable care.

Research consistently shows that engaged members generate lower health care spend across generations.¹¹ Both digital experience and advocacy programs play important roles in helping employees understand their health plan, navigate the health system and take full advantage of their benefits. Carriers that are continually enhancing these capabilities can make it easier for members to make more informed care choices that can also improve plan satisfaction. This may include offering a provider search experience that prioritizes results based on cost criteria, coverage and other personal preferences, or delivering personalized, real-time support through AI-powered capabilities like Avery (UnitedHealthcare’s AI companion) or Advocates who can help connect members to care and resources based on their individual needs.

Today's employees across virtually every generation expect a connected, digital-first benefits experience,¹⁸ making it more important than ever for employers to select a carrier that offers a single, simplified point of entry into all available benefits. UnitedHealthcare delivers that through an integrated ecosystem of offerings accessible to members through the UnitedHealthcare® app and myuhc.com®. There, members can do everything from search for care and enroll in relevant programs based on their benefits and coverage to track and pay claims. By removing some of the confusion around navigating benefits and care, employers may end up with employees who are healthier and more satisfied with their employer-sponsored benefits package. 

Today's workforce is more diverse than ever, and a one-size-fits-all approach may leave many employees without the support that may be most meaningful to them — making customizable, voluntary benefit options a critical tool for employers looking to meet their team members where they are. By empowering employees with offerings they can select — or even purchase using employer-funded dollars — based on individual needs, employers can deliver broader, more personalized and scalable benefits packages that employees may value.

For instance, UHC Store gives eligible members access to an exclusive digital shop where they can purchase a variety of well-being offerings. UHC Store can accommodate various employer-contribution and consumer payment models, including lifestyle spending accounts (LSAs), health savings accounts (HSAs), flexible spending accounts (FSAs) and more — to help give employers flexibility in how they support employees and empower choice. For example, self-funded employers can choose to fund an LSA that works with UHC Store to help offset employee costs for a range of LSA-eligible offerings. Putting employees in the driver’s seat may help employers better meet the diverse needs and preferences of a multigenerational workforce.

Focusing on just the medical side of an employee’s health doesn’t offer a complete picture. Taking a whole-person approach means addressing one’s physical, mental, financial and overall health and well-being needs. In fact, 95% of surveyed employers believe that offering benefits that support overall well-being can enhance the health care experience for employees and make their benefits package more attractive to them.¹⁹ An employee’s care may also be better coordinated when benefits and programs are integrated under a single carrier rather than fragmented across different vendors and carriers. Designing a benefits package that accounts for all the factors that may influence an employee’s health can help ensure every generation of a workforce feels supported.